CHAPTER 171
HOUSE BILL No. 2563
An  Act concerning securities; relating to investor education; establishing the investor
education fund; amending K.S.A. 2001 Supp. 17-1271 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 2001 Supp. 17-1271 is hereby amended to read as
follows: 17-1271. (a) The securities commissioner shall remit all moneys
received from all fees, charges, deposits or penalties which have been
collected under the Kansas securities act or other laws of this state reg-
ulating the issuance, sale or disposal of securities or regulating dealers in
this state or under the uniform land sales practices act, to the state trea-
surer in accordance with the provisions of K.S.A. 75-4215, and amend-
ments thereto. Upon receipt of each such remittance, the state treasurer
shall deposit the entire amount in the state treasury. Twenty percent In
accordance with subsection (a) of K.S.A. 75-3170, and amendments
thereto, 20% of each such deposit shall be credited to the state general
fund and, except as provided in subsection (d), the balance shall be cred-
ited to the securities act fee fund.

      (b) On the last day of each fiscal year, the director of accounts and
reports shall transfer from the securities act fee fund to the state general
fund any remaining unencumbered amount in the securities act fee fund
exceeding $50,000 so that the beginning unencumbered balance in the
securities act fee fund on the first day of each fiscal year is $50,000. All
expenditures from the securities act fee fund shall be made in accordance
with appropriation acts upon warrants of the director of accounts and
reports issued pursuant to vouchers approved by the securities commis-
sioner or by a person or persons designated by the securities commis-
sioner.

      (c) All amounts transferred from the securities act fee fund to the
state general fund under subsection (b) are to reimburse the state general
fund for accounting, auditing, budgeting, legal, payroll, personnel and
purchasing services and any other governmental services which are per-
formed on behalf of the state agency involved by other state agencies
which receive appropriations from the state general fund to provide such
services. Such reimbursements are in addition to those authorized by
K.S.A. 75-3170a, and amendments thereto.

      (d) There is hereby established in the state treasury the investor ed-
ucation fund. Such fund shall be administered by the securities commis-
sioner for the purpose of providing for the education of consumers in
matters concerning securities regulation and investments. Moneys col-
lected as civil penalties under K.S.A. 17-1266a, and amendments thereto,
shall be credited to the investor education fund. The securities commis-
sioner may also receive payments designated to be credited to the investor
education fund as a condition in settlements of cases arising out of inves-
tigations or examinations. All expenditures from the investor education
fund shall be made in accordance with appropriation acts upon warrants
of the director of accounts and reports issued pursuant to vouchers ap-
proved by the securities commissioner or by a person or persons desig-
nated by the securities commissioner. Five years after the effective date
of this act, the securities commissioner shall conduct a review and submit
a report to the governor and the legislature concerning the expenditures
from the investor education fund and the results achieved from the in-
vestor education program. 
Sec.  2. K.S.A. 2001 Supp. 17-1271 is hereby repealed.
 Sec.  3. This act shall take effect and be in force from and after its
publication in the statute book.

Approved May 29, 2002.
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